Simplex Papers Limited reported a narrowed net loss of ₹1.14 crore for the financial year ended March 31, 2026, compared to a net loss of ₹1.60 crore in the previous year. The company, which has no revenue from operations, continues to face financial headwinds as its net worth has been fully eroded by accumulated losses. Consequently, the statutory auditors have flagged a material uncertainty regarding the entity's ability to continue as a going concern.

The financial statements reveal that the company’s total income stood at ₹0.01 crore, solely comprising other income, while total expenses amounted to ₹1.15 crore. The primary expense drivers were employee benefits and other operational costs. Despite the reduction in losses, the auditors emphasized that the financial statements have been prepared on a going concern basis based on management's projections, though significant doubts remain about the company's ability to meet its liabilities as they fall due.

Financial Performance

The company’s financial performance for the year reflects a challenging operational environment with no revenue generated from trading activities. The loss before tax for the period was ₹1.14 crore, a reduction from the ₹1.60 crore loss recorded in the previous fiscal year.

Contingent Liabilities and Audit Observations

A significant risk factor for simplex papers is the substantial contingent liabilities disclosed in the annual report. The company is involved in appeals regarding disputed excise duty demands aggregating to ₹33.36 crore, relating to the period from 1994 to 2000, which are currently pending adjudication before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

Furthermore, the Independent Auditor’s Report drew attention to the company’s eroded net worth and accumulated losses. The auditors noted that this situation, combined with other matters, indicates an uncertainty that may cast doubt on the company's ability to continue as a going concern. However, the opinion was not modified, relying on management’s projections.

Corporate Governance and Board Changes

During the year, the company witnessed changes in its board composition. Smt. Sita Sunil ceased to be a Director effective April 7, 2026. Subsequently, the board approved the appointment of Shri Shrikrushna N. Pawar as an Additional Director in the category of Non-Executive Independent Director, effective June 16, 2026, subject to shareholder approval.

The board has recommended the re-appointment of Shri Shekhar R Singh, who retires by rotation at the upcoming Annual General Meeting. The company has also proposed a special resolution to seek shareholder approval for the sale of a non-operational land parcel in Gondia, Maharashtra, to unlock idle capital.

Simplex Papers Limited will hold its 31st Annual General Meeting (AGM) on August 4, 2026, at 12:00 p.m. through Video Conferencing (VC) and Other Audio Visual Means (OAVM). The meeting is convened to transact business as set out in the notice, which will be circulated separately. This decision complies with the Companies Act, 2013, and relevant circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India (SEBI).

The Notice of the AGM along with the Annual Report 2025-2026 will be sent electronically to members whose email addresses are registered with the company, its Registrar & Transfer Agent, or Depository Participants. Members without registered email addresses will receive a letter providing the web-link to the Annual Report. Pursuant to the relevant circulars, the requirement to send physical copies of the Annual Report has been dispensed with.

Members can attend and participate in the AGM through the VC/OAVM facility. Votes on all resolutions set out in the Notice must be cast through the e-voting system only, with details to be provided in the Notice of the Meeting. Members attending via VC/OAVM will be counted for the purpose of reckoning the quorum under Section 103 of the Companies Act, 2013.

Members holding shares in physical or demat form who have not registered or updated their email addresses are requested to send the necessary documents to the company or its Registrar. The e-copy of the Annual Report 2025-26, along with the Notice of the AGM, Financial Statements, and other Statutory Reports, will be available on the company's website and the National Securities Depository Limited (NSDL) e-voting portal.

Meeting Details

The Notice of the AGM will also be available on the website of BSE India Ltd. This advance information is issued to members in compliance with the relevant MCA and SEBI circulars.